EVALUATION OF SELECTED CORE BANKING SYSTEM REPLACEMENT PROCESS IN PTX
By
Fenty Tiodor Simanjuntak 22012207
A thesis submitted to the Faculty of
ENGINEERING AND INFORMATION TECHNOLOGY
in partial fulfillment of the requirements For the
MASTER’S DEGREE in
INFORMATION TECHNOLOGY
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
January 2014
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Fenty Tiodor Simanjuntak
_____________________________________________
Student Date
Approved by:
Dr. Ir. Moh. A. Amin Soetomo, M.Sc.
_____________________________________________
Thesis Advisor Date
Ir. Heru Purnomo Ipung, M.Eng.
_____________________________________________
Thesis Co-Advisor Date
Dr. Ir. Gembong Baskoro, M.Sc.
_____________________________________________
Dean Date
ABSTRACT
EVALUATION OF SELECTED CORE BANKING SYSTEM REPLACEMENT PROCESS IN PTX
By
Fenty Tiodor Simanjuntak
Dr. Ir. Moh. A. Amin Soetomo, M.Sc., Advisor Ir. Heru Purnomo Ipung, M. Eng., Co-Advisor
SWISS GERMAN UNIVERISTY
The core Banking System selection process for banks is rarely to be conducted. But, the bank someday will need to replace the legacy core banking system after several years due to the aging system that might impact to the business or services to customers. The core banking system replacement will need a careful decision, not only needed to do the cost and benefit analysis but also the long term impact to the business if wrong decision made. In selecting the system, the bank must comply with the existing policy and procedure and the local regulation. This research studies the evaluation of the selected core banking system replacement in PTX. In this case, the problem identified is come from Bank Indonesia audit report resulted that the appointments of several IT vendors in the past were not complied with PTX policy and procedure and Bank Indonesia regulation. The research results have shown that the vendor selection process is largely almost complied with the existing PTX policy and procedure and also Bank Indonesia regulation. There are several gaps that are needed to be fixed and some recommendation to improve the existing PTX policy and procedure so that the process will be fully complied.
Keywords : Core Banking, Policy Procedure, Vendor Selection, Compliance
© Copyright 2014 by Fenty Tiodor Simanjuntak
All rights reserved
DEDICATION
I dedicate this thesis to my parent Mrs. D. E. Tampubolon who always prays for her daughter, my beloved husband Tommy Mukdani, my son Tito Mangasi, and my daughter Femmy Esther, who support me in everything to complete the thesis.
ACKNOWLEDGEMENTS
First, the author wishes to give thanks to Jesus Christ, without Him I couldn’t completed the thesis.
Second, the author would like to give thanks to the Subject Matter Experts from PTX for their fully support, patience and kindness for giving their time for interview and discussion.
Third, the author would also like to give thanks to my advisor Mr. Dr. Ir. Moh. A.
Amin Soetomo, M.Sc. and my co-advisor Mr. Ir. Heru Purnomo Ipung, M. Eng. who helpful in guiding me from the beginning until the end of the thesis process.
Last but not least, the author would like to give thanks to all my friends who support me in MIT study.
TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 9
LIST OF TABLES ... 10
CHAPTER 1 – INTRODUCTION ... 11
1.1 Research Background ... 11
1.2 General Statement of Problem Area ... 13
1.3 Research Problem ... 13
1.4 Research Limitations ... 17
1.5 Research Questions & Hypotheses ... 17
1.6 Research Objectives ... 18
CHAPTER 2 - LITERATURE REVIEW ... 19
2.1 Core Banking System ... 19
2.2 Core Banking System Solution ... 19
2.3 Vendor Management Office ... 20
2.4 Vendor Selection Criteria ... 29
2.5 COBIT 5... 31
2.6 Vendor Selection - Local Governing Regulation from Bank Indonesia ... 32
2.7 Vendor Selection Process – PTX Policy & Procedure ... 34
CHAPTER 3 – RESEARCH METHODS ... 41
3.1 Introduction ... 41
3.2 Research Methodology ... 41
CHAPTER 4 – RESEARCH DESIGN & EXPERIMENT ... 43
4.1 Research Design... 43
4.2 Data Collection ... 43
4.3 Data Analysis ... 44
4.4 Experiment ... 44
CHAPTER 5 – RESULTS AND DISCUSSIONS... 45
5.1 Core Banking Platform Project ... 45
5.2 Review of Vendor Selection Process ... 46
5.3 Evaluation of vendor selection process ... 51
5.4 Gaps Analysis /Findings ... 64
5.5 Assessment using COBIT5 ... 64
5.6 Expert Review and Comments... 69
CHAPTER 6 – CONCLUSIONS AND RECCOMENDATIONS ... 71
6.1 Conclusion ... 71
6.2 Recommendation ... 71
6.3 Future Work ... 72
GLOSSARY ... 73
REFERENCES ... 76
APPENDICES ... 78
CURRICULUM VITAE ... 95
LIST OF FIGURES
Figures Page
Fishbone Analysis to observe problem ... 16
Core Banking System Gartner Research (September 2011) ... 20
Initial Supplier Evaluation and Selection Audit Development, Source: Bello, 2003 .. 22
PTX Sourcing Methodology ... 35
Supplier Selection Framework ... 39
Supplier Selection Process ... 39
Research Methodology ... 41
Vendor Evaluation Score ... 50
Compliance to PTX Policies & Procedures and Bank Indonesia Regulation ... 64
Compliance of COBIT5 ... 69
LIST OF TABLES
Table Page
Approaches for Conducting the Initial Market Research, Source: Bandor, 2006 ... 24
Examples of Intangible Factors, Source: Bandor, 2006 ... 26
RFI Results... 47
RFP Results ... 48
Result related to Identification Stage ... 51
Result related to Preparation Stage ... 52
Result related to Discovery Stage ... 52
Result related to Clarification Stage ... 53
Result related to Decision Making Stage ... 53
Result related to Closure Stage ... 54
Result related to Procurement Policy ... 55
Requirement for Criticality Category ... 55
Result related to Appendix PBI section Policies & Procedure ... 56
Result related to Appendix PBI section Risk Management ... 57
Result related to Appendix PBI Acquisition Standard ... 58
Result related to Appendix PBI section Acquisition Guideline ... 59
Result related to Appendix PBI section Software License ... 59
Result related to PBI IT Risk Management ... 63
Result related to COBIT APO10.01 Identify and evaluate supplier relationships and contracts ... 65
Result related to COBIT APO10.02 select suppliers ... 66
Result related to COBIT APO10.03 Manage supplier relationships and contracts ... 67
Result related to COBIT APO10.04 Manage supplier risk ... 68
Result related to COBIT APO10.05 monitor supplier performance and compliance . 68 Comparison of several selection process ... 78
